Musings on leadership, management, strategy, economics, philosophy, and current affairs.

09/05/2013

Taxation in RI

Income
Tax: All residents are required to pay income tax, which is progressive with
top tax rate @ 30% applicable on the income over IDR 500 million per annum
(appx USD 45k).

Corporate
Tax: The rate of corporate tax on profits is 25%. The regime encourages share
listing, as the corporate tax rate is lower at 20% for entities with 40% or
more shares listed. SMEs with a turnover of less than IDR 50 billion (appx USD
4.5 million) are entitled to a discount of 50% of the tax rate.

Withholding
Tax: There are varieties of withholding taxes. Generally @ 20% is applicable on
payments to non-residents.